NEW YORK (Reuters) – U.S. crude oil futures rose sharply on
Tuesday on economic recovery optimism after oil seesawed earlier.
“We continue to pivot around $70. Once the S&P (500 index) firmed and
when Bernanke said recession was near an end it seemed to send crude back
up above $70,” said Gene McGillian, analyst at Tradition Energy in
Stamford, Connecticut.
Federal Reserve Chairman Ben Bernanke said the worst recession since
the Great Depression was probably over, but the recovery would be slow.
[ID:nN1523355]
U.S. stocks rose modestly after stronger-than-expected retail sales
data. [.N]
U.S. retail sales in August rose at their fastest pace in 3-1/2 years,
the Commerce Department reported. [ID:nN14478930]
U.S. producer prices rose more than twice as much as expected in August
as gasoline prices surged, while prices declined less than expected
compared with a year ago, a government report showed on Tuesday.
[ID:nN15543702]
The U.S. dollar edged lower against a basket of currencies as gains in
global stock markets reduced the greenback’s appeal as a safe haven.
Earlier on Tuesday it was stronger against the euro and the basket of
currencies. [USD/]
Crude oil has recently been hemmed in under its 2009 peak of $75 a
barrel by concerns about rising refined product supplies, especially
distillates.
Crack spreads continued to be weak, with both RBOB and heating oil
spreads based on October crude and products contracts hovering near $4 a
barrel.
PRICES
* On the New York Mercantile Exchange at 2:15 p.m EDT (1815 GMT),
October crude CLV9 was up $2.15, or 3.12 percent, at $71.01 a barrel,
trading from $68.48 to $71.19.
* In London, expiring front-month October Brent crude LCOV9 was down
14 cents, or 0.21 percent, to $67.30 a barrel, trading from $66.68 to
$67.93.
* NYMEX October RBOB RBV9 rose 5.08 cents, or 2.91 percent, to
$1.7941 gallon, trading from $1.73 to $1.7980.
* NYMEX October heating oil HOV9 rose 4.78 cents, or 2.74 percent, to
$1.79 a gallon, trading from $1.73 and $1.79.
* The October/October RBOB crack spread <0#RB-CL=R> was at $4.28, after
ending at $4.36 on Monday. The October/October heating oil crack spread
<0#CL-HO=R> was at $4.11, after ending at $4.31 on Monday.
* The spread between the current front month and the five-year forward
crude contract CLc61 was at $11.42, based on the October 2014 contract
Monday settlement at $82.43. The spread ended Monday at $13.57.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $69.35/$70.73
Technical support/resistance:
NYMEX crude: $66.94/$70.67
NYMEX heating oil: $1.7070/$1.7772
NYMEX RBOB: $1.7070/$1.77796
For a full report on technicals, click on [ID:nLF353449]
MARKET NEWS
* An expanded Reuters survey of analysts forecast that crude supplies
would be down, but product inventories up, last week. Refinery use was seen
lower. [EIA/S]
* OPEC said in monthly report that evidence of an impending world
economic upturn appears to be gathering but recovery will be slow and
gradual. OPEC left its world oil demand forecast for 2010 unchanged.
[ID:nLAE000060]
* For a list of recent refinery and unit shutdowns and restarts, click
[REF/US].
* U.S. retail gasoline demand last week fell 3.1 percent from a year
ago, but was nearly unchanged from the previous week, a MasterCard
SpendingPulse report said. [ID:nNYS005413]
(Reporting by Robert Gibbons and Gene Ramos;
Editing by John Picinich)

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